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MargotB (North Carolina)
Posts: 10
Posted:
The HOA management company has suggested instead of changing our by laws, that we put together a handbook, which would over ride the by laws, etc.,and would be used as The Bible, in our community, but would cost a great deal less than having by law revision done. How can, we, as an HOA make people abide by a handbook, that they have no say in, no approval of, when they've moved in under the blanket of the community doctrines.Doesn't sound right, so looking for answers?
Jadedone4 (Virginia)
Posts: 495
Posted:
Margot,

The order is...

Federal laws,
State statutes/codes,
Local/county/city codes/states/ordinances,
Plat,
CC&Rs,
Art's of Inc.,
By-Laws,
Rules and Regulations.

Any "handbook" would (IMHO) fall between Bylaws and Rules/Regulations, while the board can vote to create this "handbook" the community often is required to vote to "raise" to altering/changing/modifying the Bylaws (and there should be instructions contain in the governing doc's which dictate how - i.e. special meetings, percentage to pass, etc).

I would assume that what the M/C may have "proposed" was "practice versus policy" where you have practices which are expected from residents (things like etiquette requirements), but are not "set in stone" laws. And then you have policies (bylaws, etc) which are "set in stone" (usually complete with infraction definitions, enforcements, cures, and further remedies if no cure is effected), and are punisible by fines, etc.
PaulM (Pennsylvania)
Posts: 1,347
Posted:
MargotB:
A handbook cannot override the bylaws since the bylaws are an officially recorded document with appropriate legal offices. That is why it has the 'authority' over rules & regs. which do not have to be officially recorded.

A handbook, IMO, would be a useful tool in citing the 'processes' by which your community functions: i.e., submitting architectural requests, annual meeting w/elections, the established Committees, violations & fine schedule, maintenance the assn. is responsible for--those things in the bylaws which are important to living cohesively within the community itself.

Further, if the handbook is only confirming what has already been dictated by declaration and bylaws, there is no need for member vote.
Now, if you are talking about establishing Rules & Regulations, which may expand some processes or 'tweak' them slightly, that is a different 'kettle of fish', and you may want to poll membership for majority. It never ceases to amaze me how Boards continually try to lay down the 'law' from what they feel is their 'lofty position' and expect the lowly members to just nicely and quietly cooperate.

As a P.S., I would question the credentials of your HOA manager to suggest that a handbook could override the Bylaws.

JeanneK3 (Maryland)
Posts: 562
Posted:
I agree with Paul M. Your property manager is giving you advice that is wrong. Find another property manager.
RogerB (Colorado)
Posts: 5,067
Posted:
I agree with Paul. And if your Board has the authority to establish Rules and Regulations, they would be wise to provide a draft to members for their input prior to finalizing the booklet of these policies and procedures.
MargotB (North Carolina)
Posts: 10
Posted:
Thank you all for responding. They are wanting the handbook to expand and over ride some of the community by-laws. The management company is always finding a "loop hole" from which they base their actions. It is amazing how this particular HOA is run, after being a part of four others.People sure get off on a falst sense of POWER.
DaneC (California)
Posts: 210
Posted:
Here is a copy of "Guidelines in Writing By-Laws" from a publication by the California Franchise Tax Board. By-Laws relate to the Association, while CC&R's relate to the membership.

Bylaws set forth how an organization will operate. Following are some standard categories included in bylaws and descriptions of what may be addressed in each category. These are not mandatory categories, nor are they all inclusive. They are merely provided for guidance purposes. When you draft bylaws, you should include only those categories that meet your operational needs.
NAME
The name of the organization. The form of the seal (if any). What is
required for the organization to change its name (such as a vote of a certain percentage of the members).
PURPOSES
Describe the purposes of the organization.
MEMBERSHIP
Establish requirements regarding the membership including:
1. Basis for membership
2. Basis for terminating a person’s membership
MEETINGS
Describe activities or requirements for meetings, including:
1. When regular meetings will be held
2. How they are to be rescheduled if the need arises
3. How and when members will be notified of meetings
4. How special meetings are to be called
5. What percentage of membership constitutes a quorum in the event
a vote is to be taken
VOTING
Describe issues concerning voting, including:
1. When and how voting will be conducted
2. How the votes will be tallied and who will do the tallying
3. How board members and officers will be elected
ORDER OF BUSINESS
Establish the order in which the meetings will be conducted.
BOARD OF DIRECTORS
Describe the requirements of the board of directors, including:
1. How many board members there will be
2. How they will be chosen
3. How long they will serve
4. What their responsibilities will be
5. When they will meet
6. How many constitute a quorum
7. Basis for removal of a director
OFFICERS
Describe the requirements of the officers, including:
1. How many officers there will be
2. How they will be chosen
3. How long they will serve
4. What their responsibilities will be
5. When they will meet
6. Basis for removal of an officer
7. Whether they will be compensated for their services
SALARIES
Describe issues concerning salaries, including:
1. Who will establish the amount
2. Options for revising the amount
COMMITTEES
Describe issues associated with committees, including:
1. What the committees will be responsible for doing
2. How new committees will be created
3. Who may serve on a committee
4. How long members will serve on a committee
5. Basis for removing committee members
DUES
Describe issues associated with dues, including:
1. The amount of dues
2. When they are to be paid
3. Consequences of failing to pay the dues
4. How the amount is established and/or revised
RECORDS AND REPORTS
Describe the accounts, books, and records to be maintained by the
organization. Describe the minutes to be kept at each meeting, whether or not they will be opened for inspection and, if open, when they will be available.
AMENDMENTS
Describe issues associated with how the bylaws will be amended,
include:
1. Who can initiate an amendment
2. When the amendment will be made
3. If a vote is to be taken will a majority or quorum be required
OTHER
Include any other provisions you may want to include as guidance in
how the organization will operate.
MargotB (North Carolina)
Posts: 10
Posted:
We have community doctrines such as CC and R's, by laws and articles of incorporation. The HOA is wanting to add verbage and change some of the bylaws, but doesn't want to pay the atty fees. Therefore, the management company has found a way for them to do this without assocition approval via a two thirds vote, or paying lofty atty fees. A Handbook is the answer! It is not about some of the things stated in this discussion,like procedural entities, but about things that we can and cannot do when improving and or landscaping our properties. They will list certain things, some of which have been done here, that are now not acceptable to this ARC and Board. This just doesn't sound reasonable because our community rules and covenants could change every two years depending on who is in office with all continuity and scope of practice, lost, not to mention the ability to change things to serve selfish needs. Is this legal, as I feel it's manipulation and most wouldn't even question that.

Case in point: A friend of the past president wanted to add a third car garage with studio apt above, without attaching it to the structure. It was approved, of course, and people were outraged because it looked awful, could potentially be an inlaw and we do not allow this, and the list goes on and on. To insure another one doesn't go up, this handbook will be put together and specifying that none of these garage extensions will ever go up in our neighborhood. They also will list other projects that are questionable and in litigation, like mine, so that they can end the discussion and or legal proceedings saying "this is what we've now adopted." Now, from the little bit of HOA law I know, after something is approve and erected, doesn't the law state that anyone else can do the same project, if exactly followed and placed?
Jadedone4 (Virginia)
Posts: 495
Posted:
Margot,

There are a few things going on in your post/community.

First if the community fails to enforce the rules and regulations, no matter how many, or how drafted, they will not resolve issues, unless there is proper enforcement.

I somehow there was an improper build by the President's friend, which violated the ARC standards, that structure (depending on the cost benefit analysis of fighting to have it removed, versus the ammount of money spent by the HOA), it can be "grandfathered" and then from that point forward any requests for similar structures can be legally and properly rejected by the ARC or board.

HOA's are living breathind entities and mistakes do occur. The important step is to acknowledge the mistake and to take measures to assure that it does not occur again.

If your community already has these rules/regulations on the books, but failed to enforce, then I would start there, enforcing - or educating the board, and community - what rules exist, prior to adding more and more layers of rules, in hopes of "POE" (process of elimination) of infractions.
PaulM (Pennsylvania)
Posts: 1,347
Posted:
MargotB: To directly respond to your statement..."This just doesn't sound reasonable because our community rules and covenants could change every two years depending on who is in office..."

To reiterate what has been stated, the Covenant documents, CC&Rs, Declaration, Bylaws CANNOT BE CHANGED on a new Board's whim or fancy; they are officially and legally recorded directives for your community. However, they CAN BE CHANGED by the appropriate member vote which is stated in the documents themselves. IF you change the bylaws without using the process as stated in the bylaws, you run the risk of the residents NOT adhering to the change anyway, since the change does not carry authority without it being legally recorded, and how are you ahead? Further, if you are going to create a 'handbook' to try to add verbiage and 'change some of the bylaws' you have been advised the handbook carries less authority than the bylaws; would not hold up in court.

But, it sounds like you are convinced, by your inept mgmt. company, that this will work. Good Luck!
BradP (Kansas)
Posts: 2,640
Posted:
Margot:

A handbook is a guideline for how to run a certain things. Most of us have handbooks in our office that tell how protocols, have plans in them, etc. A Handbook is NOT meant to be an all inclusive set of rules, usually it will refer you to something. I see no problem with creating a handbook that tells your BOD how to run the association and then refers them to bylaws, CC&R's, etc or better yet would include them. But to think that a created handbook will supercede that is not logical thought.
EdieL (Virginia)
Posts: 86
Posted:
Our BOD is using a BOD Policy and Proceedure Manual to cercumvent the Covenants. Once the BOD
Puts this into motion, they do not back down. Our Covenants say that a special meeting can be
called by majority of owners to elemenate any action of the BOD. In our case it takes 80 property
owners to call a special meeting. Unfortunately members do not respond and do not follow what the
BOD does. It's a catch 22. What are the concerned owners (less than a majorityfor vote) to do?
PaulJ (South Carolina)
Posts: 40
Posted:
Quote:
Posted By MargotB on 07/22/2007 1:20 AM
The HOA management company has suggested instead of changing our by laws, that we put together a handbook, which would over ride the by laws, etc.,and would be used as The Bible, in our community, but would cost a great deal less than having by law revision done. How can, we, as an HOA make people abide by a handbook, that they have no say in, no approval of, when they've moved in under the blanket of the community doctrines.Doesn't sound right, so looking for answers?

A handbook generally clarifies things that your by-laws do not address specifically, and includes your Rules and Regulations, which may be set by the current BOD. If our HOA thinks you can override your by-laws with a handbook, you need to consider someone else.
EdieL (Virginia)
Posts: 86
Posted:
Quote:
Posted By EdieL on 08/05/2007 9:01 AM
Our BOD is using a BOD Policy and Proceedure Manual to cercumvent the Covenants. Once the BOD
Puts this into motion, they do not back down. Our Covenants say that a special meeting can be
called by majority of owners to elemenate any action of the BOD. In our case it takes 80 property
owners to call a special meeting. Unfortunately members do not respond and do not follow what the
BOD does. It's a catch 22. What are the concerned owners (less than a majorityfor vote) to do?

BradD2 (Florida)
Posts: 418
Posted:
Edie, get proxy votes. Walk the neighborhood and have people sign over their vote to you so that you alone hold the majority. That will wake up the board. During these meetings say that a majority vote can veto that measure and you happen to have enough proxies to do it. Watch for falling chins.
GloriaM (North Carolina)
Posts: 829
Posted:
Usually CCR's are recorded but the Bylaws are not. I have seen some Developers record the CCR's, Bylaws and even the handbook in the County.
EdieL (Virginia)
Posts: 86
Posted:
Brad, unfortunately our community is a vacation community with 250 lots and
only about 30% build out of homes. There is no other avenue for votes or proxies
other than mail. At the annual meetings the same 26 (out of 250) lot owners show
up every year. It seems it is all about "Don't bother me I don't care what the BOD
does" The owners don't realize that if you let a BOD run wild, eventually they will
put in place something that will affect your property rights. So Sad!!!

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